Thank you for the response, Mike.
I checked out my processor and it is an i5, luckily.
I would definitely upgrade to Vegas 11 for $65, I hadn't even looked into it, but you can't argue with that price.
The camera isn't new, either. I believe it came out in 2008. I assume the camera is not the problem, though? Do you think that if I just upgrade to Vegas 11 the program will no longer freeze when I import a long (a minute or two) hd video file?